Christie ends income tax deal with Pennsylvania

New Jersey Gov. Chris Christie says he is ending a nearly 4-decade-old tax agreement between New Jersey and Pennsylvania, all but ensuring thousands of residents

Christie weighs New Jersey, Pennsylvania taxpayers' fate (File

Christie weighs New Jersey, Pennsylvania taxpayers' fate (File Photo)

TRENTON

Gov. Chris Christie says he is ending a nearly 4-decade-old tax agreement between New Jersey and Pennsylvania, all but ensuring thousands of residents in each state will see their income tax burdens go up.
 
The Republican governor said Friday that he would reconsider his decision if the Democrat-led Legislature finds $250 million in savings from public worker health benefits.
 
The agreement allowed residents working in either state to pay taxes at their home state's rate. It was a good deal for wealthier Pennsylvanians who commuted to work in New Jersey but paid their state's lower rate and for lower-income New Jersey residents who benefited from their state's lower rates. Wealthier New Jersey residents working in Pennsylvania aren't likely to see much of a change.
 
A spokesman for Pennsylvania Democratic Gov. Tom Wolf says Christie's decision will "punish" 125,000 Pennsylvanians and will hurt the prospects for creating jobs in the region.
 
Either governor can pull out of the deal at the start of the year but must give 120 days' notice. The deadline for notice this year was Friday.
 
The Associated Press wire services contributed to this report.

advertisement | advertise on News 12

Trending Video

Jersey Weekend Buzz 1 Jersey Weekend Buzz
This is a sketch of a suspect wanted 2 Police impersonator sought in New Milford
The body of Trupal Patel, 29, was found 3 Discovery of body in Wall prompts murder investigation
New Jersey lawmakers host meeting seeking NJ Transit 4 NJ lawmakers to host meeting seeking NJ Transit riders’ input
5 VIDEO: Extended interview with Bronx filmmaker Tommy Breen

advertisement | advertise on News 12

Features

It's good to know you have Walt Kane Kane in Your Corner

It's good to know you have Walt Kane in your corner.

News 12 takes a look at the hottest Tech Check

Eric Landskroner has a look at the latest gadgets and biggest stories in tech.

News 12 On the Scene

Check out these exclusive videos from New Jersey celebs!

Sorry to interrupt...

Your first 5 are free

Access to News12 is free for Optimum, Comcast®, Time Warner® and Service Electric℠ video customers.

Please enjoy 5 complimentary views to articles, photos, and videos during the next 30 days.

LOGIN SUBSCRIBE